Algeria/Mauritania: Sonatrach Signs MoU with SMH
ALGIERS, January 30, 2025 – On Thursday in Algiers, the Sonatrach group signed a memorandum of understanding with the Mauritanian Hydrocarbons Company (SMH) to strengthen energy cooperation between the two organizations. This collaboration will specifically focus on exploration, production, expertise exchange, and training.
The agreement was signed by Rachid Hachichi, CEO of Sonatrach, and Ismail Abdel Vetah, Director General of SMH.
The memorandum establishes an orientation committee tasked with organizing and directing discussions about cooperation and partnership opportunities in exploration and production, downstream activities, transportation, and marketing of hydrocarbons.
Joint working teams composed of experts from both parties will be formed to facilitate workshops and schedule field visits to facilities involved in this partnership in Mauritania.
According to the memorandum, the collaboration aims to enhance the professional skills and training of SMH personnel through the involvement of experts from the Algerian Petroleum Institute (IAP) and Sonatrach Management Academy.
Additionally, the agreement intends to arrange practical internships and orientations for Mauritanian teams at Sonatrach sites, as well as the exchange of information and data related to basins and deposits, quality management and control, data monitoring, and the creation of data rooms to advance the oil sector.
The agreement also includes plans to implement projects for processing and reprocessing seismic data, alongside developing joint research programs focused on green and blue hydrogen and other alternative energy sources. Sonatrach will share its expertise in natural gas liquefaction and petroleum product storage with its Mauritanian counterpart.
Furthermore, both parties will collaborate on exploration and production activities, both onshore and offshore, while exploring opportunities for supplying hydrocarbons and petroleum products. They will also work together on constructing, managing, and operating the transport, storage, and distribution infrastructure for hydrocarbons intended for local consumption, including petroleum products.
The memorandum also opens the door for potentially supplying hydrocarbons and petroleum products to the Mauritanian side.
In addition, this agreement sets the stage for a joint project between Sonatrach and SMH aimed at developing the downstream sector, particularly focusing on the distribution of butane and petroleum products.
During the signing ceremony at Sonatrach’s headquarters, Hachichi highlighted that this agreement reflects the shared commitment to enhance energy cooperation between Algeria and Mauritania.
He described the memorandum as “a qualitative step” toward cultivating a strategic partnership between the two companies, creating a framework for exploring cooperation opportunities in several critical areas, including the exploitation of new hydrocarbon reserves in Mauritania.
This partnership anticipates technology transfer and the development of joint research programs in alternative energies such as hydrogen, thereby paving the way for “promising new prospects” and “a more sustainable energy future,” Hachichi asserted.
Hachichi emphasized that this memorandum seeks to expand Sonatrach’s vision by reinforcing its presence on the continent and solidifying its role as a “key player” in the energy sector.
Hachichi pointed out that the recent visit of a Mauritanian delegation to Sonatrach’s facilities provided them with an opportunity to closely observe the various operational technologies and methodologies used in production and training. “We hope this experience has added value to strengthening the cooperative relationship between both parties.”
In addition, Abdel Vetah underscored the importance of the memorandum of understanding, particularly concerning Sonatrach’s involvement in the exploration, prospecting, and development of oil and gas fields in Mauritania, as well as its participation across all areas of the petroleum and gas industry.
He assured that the terms of the memorandum signed today would be implemented “as soon as possible,” reflecting the mutual desire to enhance Algerian-Mauritanian cooperation.
